2006 Revenue Procedures Issued in IRS's Weekly Internal Revenue Bulletin

A " Revenue Procedure" is an official statement of a procedure that affects the rights or duties of taxpayers or other members of the public under the Internal Revenue Code, related statutes, tax treaties, and regulations that should be a matter of public knowledge. They are issued only by the National Office and published in the Internal Revenue Bulletin for the information and guidance of taxpayers, Service personnel, and others concerned.

Revenue Procedures	Bulletin	Date of IRB

Rev. Proc. 2006-56(HTML)	IRB #2006-52(HTML)	Dec. 26, 2006
Nonaccrual-experience method of accounting. This procedure provides the exclusive procedures under which a taxpayer may request the consent of the Commissioner to make certain changes to, from, or within a nonaccrual-experience (NAE) method of accounting and to adopt certain NAE methods. Final regulations on the NAE method of accounting are effective August 31, 2006. Rev. Proc. 2002-9 modified and amplified.
Rev. Proc. 2006-55(HTML)	IRB #2006-52(HTML)	Dec. 26, 2006
Specifications are set forth for the private printing of paper and laser-printed substitutes for tax year 2006 Form W-2, Wage and Tax Statement, and Form W-3, Transmittal of Wage and Tax Statements. Rev. Proc. 2005-65 superseded.
Rev. Proc. 2006-54(HTML)	IRB #2006-49(HTML)	Dec. 4, 2006
This document updates the procedures for requesting assistance from the U.S. competent authority under the provisions of an income, estate, or gift tax treaty to which the United States is a party. Rev. Procs. 2002-52 and 2006-26 modified and superseded. Rev. Proc. 2006-9 amplified. Rev. Rul. 92-75 clarified.
Rev. Proc. 2006-53(HTML)	IRB #2006-48(HTML)	Nov. 27, 2006
Cost-of-living adjustments for 2007. This procedure sets forth the cost-of-living adjustments to certain items for 2007 as required under various provisions of the Code. Rev. Proc. 2002-41 modified.
Rev. Proc. 2006-52(HTML)	IRB #2006-48(HTML)	Nov. 27, 2006
This procedure informs plan proponents in cases under chapter 12 of Title 11 of the United States Code of the procedures to be followed to request determinations of the income tax effects of proposed plans when such requests are authorized by the bankruptcy courts.
Rev. Proc. 2006-51(HTML)	IRB #2006-47(HTML)	Nov. 20, 2006
This procedure amplifies Rev. Proc. 2005-70, 2005-47 I.R.B. 979, to provide the maximum amount of foreign earned income, as adjusted for inflation, that may be excluded from gross income under section 911 of the Code for taxable years beginning in 2006. Rev. Proc. 2005-70 amplified.
Rev. Proc. 2006-50(HTML)	IRB #2006-47(HTML)	Nov. 20, 2006
Substantiation of expenses of Native Alaskan whaling captains. This document provides the procedures for the substantiation of whaling expenses of an individual recognized as a whaling captain by the Alaska Eskimo Whaling Commission.
Rev. Proc. 2006-49(HTML)	IRB #2006-47(HTML)	Nov. 20, 2006
Optional standard mileage rates. This procedure announces 48.5 cents as the optional rate for deducting or accounting for expenses for business use of an automobile, 14 cents as the optional rate for use of an automobile as a charitable contribution, and 20 cents as the optional rate for use of an automobile as a medical or moving expense for 2007. The procedure also provides rules for substantiating the deductible expenses of using an automobile for business, moving, medical, or charitable purposes. Rev. Proc. 2005-78 superseded.
Rev. Proc. 2006-48(HTML)	IRB #2006-47(HTML)	Nov. 20, 2006
Guidance is provided concerning when information shown on a return in accordance with the applicable forms and instructions will be adequate disclosure for purposes of reducing an understatement of income tax under sections 6662(d) and 6694(a) of the Code.
Rev. Proc. 2006-47(HTML)	IRB #2006-45(HTML)	Nov. 6, 2006
This document provides methods to determine the amount of "paragraph (e)(1) wages" for purposes of the limitation contained in section 199(b)(1) on the amount of the deduction provided by section 199(a)(1) for income attributable to domestic production activities. The procedure reflects changes in the definition of "W-2 wages" for purposes of section 199 made by the Tax Increase Prevention and Reconciliation Act of 2005 (TIPRA).
Rev. Proc. 2006-46(HTML)	IRB #2006-45(HTML)	Nov. 6, 2006
This document provides the exclusive procedures for a partnership, S corporation, electing S corporation, personal service corporation, or trust to obtain automatic approval from the Commissioner to adopt, change, or retain an annual accounting period under section 442 of the Code. Rev. Proc. 2002-38 clarified, modified, amplified, and superseded.
Rev. Proc. 2006-45(HTML)	IRB #2006-45(HTML)	Nov. 6, 2006
This document provides the exclusive procedures for a corporation to obtain automatic approval from the Commissioner to change an annual accounting period under section 442 of the Code. Rev. Proc. 2002-37 clarified, modified, amplified, and superseded.
Rev. Proc. 2006-44(HTML)	IRB #2006-44(HTML)	October 30, 2006
This procedure formally establishes the Appeals arbitration program, which is designed to improve tax administration, provide customer service, and reduce taxpayer burden. Arbitration is available for cases within Appeals jurisdiction that meet the operation requirements of the program. Generally, this program is available for cases in which a limited number of factual issues remain unresolved following settlement discussions in Appeals.
Rev. Proc. 2006-43(HTML)	IRB #2006-45(HTML)	Nov. 6, 2006
This document provides procedures under which a taxpayer may use the automatic consent procedures of Rev. Proc. 2002-9 to request a change in method of accounting to comply with regulations sections 1.168(k)-1 or 1.1400L(b)-1. Rev. Proc. 2002-9 modified and amplified.
Rev. Proc. 2006-42(HTML)	IRB #2006-47(HTML)	Nov. 20, 2006
This document provides rules for taxpayers to obtain automatic approval to change certain elections to apportion interest expense and research and experimentation expense under section 861 of the Code as a result of new rules under the section 199 domestic production activities deduction.
Rev. Proc. 2006-41(HTML)	IRB #2006-43(HTML)	October 23, 2006
Per diem allowances. This procedure provides optional rules for deeming substantiated the amount of certain business expenses of traveling away from home reimbursed to an employee or deductible by an employee or self-employed individual. Rev. Proc. 2005-67 superseded.
Rev. Proc. 2006-40(HTML)	IRB #2006-42(HTML)	October 16, 2006
This document provides procedures for an issuer of tax-exempt bonds to request an administrative appeal to the Office of Appeals from a proposed adverse determination by the Service's Office of Tax Exempt Bonds to the effect that an issue of bonds fails to qualify for the exclusion of the interest on the bonds from the gross income of the owners under section 103 of the Code. The document also provides procedures for an issuer of tax-exempt bonds to request such an administrative appeal from a denial by TEB of a claim for recovery of an asserted overpayment of arbitrage rebate under section 148. Rev. Proc. 99-35 modified and superseded.
Rev. Proc. 2006-39(HTML)	IRB #2006-40(HTML)	October 2, 2006
This procedure provides the domestic asset/liability percentages and domestic investment yields needed by foreign life insurance companies and foreign property and liability insurance companies to compute their minimum effectively connected net investment income under section 842(b) of the Code for taxable years beginning after Dec. 31, 2004.
Rev. Proc. 2006-38(HTML)	IRB #2006-39(HTML)	Sept. 25, 2006
Low-income housing credit. This procedure publishes the amounts of unused housing credit carryovers allocated to qualified states under section 42(h)(3)(D) of the Code for calendar year 2006.
Rev. Proc. 2006-37(HTML)	IRB #2006-38(HTML)	Sept. 18, 2006
This procedure modifies Rev. Proc. 2006-12, 2006-3 I.R.B. 310, to allow a taxpayer to utilize the advance consent procedures of Rev. Proc. 97-27, as modified and amplified by Rev. Proc. 2002-19, as amplified and clarified by Rev. Proc. 2002-54, when seeking a change to a method of accounting provided in regulations sections 1.263(a)-4, 1.263(a)-5, or 1.167(a)-3(b) in conjunction with a change for the same item to a method of accounting utilizing the 31/2 month rule authorized by regulations section 1.461-4(d)(6)(ii) or the recurring item exception authorized by regulations section 1.461-5. Rev. Proc. 2006-12 modified.
Rev. Proc. 2006-36(HTML)	IRB #2006-38(HTML)	Sept. 18, 2006
This procedure sets forth the Service's procedures for other government agencies or members of the public to request the creation of special statistical studies and compilations involving return information pursuant to section 6108(b) of the Code, and sets forth the criteria for determining reasonable fees for costs associated with the creation of the special statistical studies and compilations.
Rev. Proc. 2006-35(HTML)	IRB #2006-37(HTML)	Sept. 11, 2006
This revenue procedure announces new user fees that will be charged by the Service to process Form 8802, Application for United States Residency Certification. The user fee will be charged for all Form 8802 applications submitted with a postmark date on or after October 2, 2006. The rules for these user fees are set forth and will be incorporated in the next revision of Form 8802 and accompanying instructions.
Rev. Proc. 2006-34(HTML)	IRB #2006-38(HTML)	Sept. 18, 2006
This procedure provides specifications for filing Form 1042-S, Foreign Person's U.S. Source Income Subject to Withholding, electronically or magnetically. The procedure will be reproduced as the current revision of Publication 1187. Rev. Proc. 2004-63 superseded.
Rev. Proc 2006-33(HTML)	IRB #2006-32(HTML)	August 7, 2006
Electronic filing; magnetic media; 2006 form specifications. This procedure contains updates and changes to Publication 1220, Specifications for Filing Forms 1098, 1099, 5498 and W-2G Electronically or Magnetically. Rev. Proc. 2005-49 superseded.
Rev. Proc 2006-32(HTML)	IRB #2006-28(HTML)	July 10, 2006
Casualty and theft losses. This document provides individual taxpayers with safe harbor methods they may use in determining the amount of their casualty and theft loss deductions for personal-use residential real property and certain personal belongings that were damaged, destroyed, or stolen as a result of Hurricanes Katrina, Rita, or Wilma.
Rev. Proc 2006-31(HTML)	IRB #2006-27(HTML)	July 3, 2006
This procedure provides guidance on revoking an election under section 83(b) of the Code. The procedure sets forth the requirements that must be satisfied before permission to revoke the election can be granted. Additionally, it sets forth the information that must be provided when requesting permission to revoke an election under section 83(b).
Rev. Proc 2006-30(HTML)	IRB #2006-31(HTML)	July 31, 2006
Report of tips by employee to employer. This procedure provides guidance on the Attributed Tip Income Program (ATIP), which is a new voluntary tip reporting program providing benefits to employers and employees similar to other tip reporting agreements without requiring one-on-one meetings with the Service to determine tip rates or eligibility. (Continued on the next page)
Rev. Proc 2006-29(HTML)	IRB #2006-27(HTML)	July 3, 2006
This procedure contains revisions to Publication 1239, Specifications for Filing Form 8027, Employer's Annual Information Return of Tip Income and Allocated Tips, Electronically or Magnetically. Rev. Proc. 2005-41 superseded.
Rev. Proc 2006-28(HTML)	IRB #2006-25(HTML)	June 19, 2006
Guidance is provided to individuals who fail to meet the eligibility requirements of section 911(d)(1) of the Code because adverse conditions in a foreign country preclude the individuals from meeting those requirements. A list of the country for tax year 2005 and the date that country is subject to the section 911(d)(4) waiver is provided.
Rev. Proc 2006-27(HTML)	IRB #2006-22(HTML)	May 30, 2006
Administrative programs; correction programs. This procedure updates and expands upon the Service's comprehensive Employee Plans Compliance Resolution System (EPCRS) of correction programs for retirement plans within the jurisdiction of the Commissioner, Tax Exempt and Government Entities Division. Rev. Proc. 2003-44 modified and superseded.
Rev. Proc 2006-26(HTML)	IRB #2006-21(HTML)	May 22, 2006
This procedure announces the introduction of user fees for requests submitted to the U.S. competent authority for discretionary determinations under limitation on benefits provisions of U.S. income tax treaties. Rev. Proc. 2002-52 modified.
Rev. Proc 2006-25(HTML)	IRB #2006-21(HTML)	May 22, 2006
Specifications are set forth for the private printing of paper and laser-printed substitutes for the January 2006 revisions of Form 941, Employer's QUARTERLY Federal Tax Return, and Schedule B (Form 941), Report of Tax Liability for Semiweekly Schedule Depositors. This procedure will be reproduced as the next revision of Publication 4436, General Rules and Specifications for Substitute Form 941 and Schedule B (Form 941). Rev. Proc. 2005-21 superseded.
Rev. Proc 2006-24(HTML)	IRB #2006-22(HTML)	May 30, 2006
This procedure informs the trustee (or debtor in possession) representing the bankruptcy estate of the debtor of the procedure to be followed in obtaining a prompt determination by the Service of any unpaid tax liability of the estate incurred during the administration of the case. Rev. Proc. 81-17 obsoleted.
Rev. Proc 2006-23(HTML)	IRB #2006-20(HTML)	May 15, 2006
This document updates the procedures for requesting assistance from the U.S. competent authority under the provisions of tax coordination agreements entered into between the IRS and the tax agencies of American Samoa, Guam, the Commonwealth of the Northern Mariana Islands, the U.S. Virgin Islands, and Puerto Rico (collectively, the U.S. possessions). Rev. Proc. 89-8 superseded.
Rev. Proc 2006-22(HTML)	IRB #2006-23(HTML)	June 5, 2006
This procedure provides methods to be used in determining the amount of W-2 wages for purposes of the limitation contained in section 199(b)(1) of the Code on the amount of the deduction provided by section 199(a)(1) for domestic production activities. This procedure applies only for taxable years beginning on or after January 1, 2005, and on or before May 17, 2006, and only under certain specific conditions.
Rev. Proc 2006-21(HTML)	IRB #2006-24(HTML)	June 12, 2006
Section 1502. The Service eliminates impediments to e-filing consolidated returns and reduces reporting requirements. Rev. Procs. 89-56, 90-39, and 2002-32 modified.
Rev. Proc 2006-20(HTML)	IRB #2006-17(HTML)	April 24, 2006
Qualified mortgage bonds; mortgage credit certificates; national median gross income. Guidance is provided concerning the use of the national and area median gross income figures by issuers of qualified mortgage bonds and mortgage credit certificates in determining the housing cost/income ratio described in section 143(f) of the Code. Rev. Proc. 2005-22 obsoleted.
Rev. Proc 2006-19(HTML)	IRB #2006-13(HTML)	March 27, 2006
Specifications are set forth for the private printing of paper and laser-printed substitutes for the January 2006 revisions of Form W-2c, Corrected Wage and Tax Statement, and Form W-3c, Transmittal of Corrected Wage and Tax Statements. Rev. Proc. 2003-31 superseded.
Rev. Proc 2006-18(HTML)	IRB #2006-12(HTML)	March 20, 2006
Automobile owners and lessees. This procedure provides owners and lessees of passenger automobiles (including trucks, vans, and electric automobiles) with tables detailing the limitations on depreciation deductions for passenger automobiles first placed in service during calendar year 2006 and the amounts to be included in income for passenger automobiles first leased during calendar year 2006.
Rev. Proc 2006-17(HTML)	IRB #2006-14(HTML)	April 3, 2006
This procedure provides issuers of qualified mortgage bonds (QMBs) and qualified mortgage credit certificates (MCCs) with average area purchase price safe-harbors for statistical areas in the United States and with a nationwide average purchase price for residences in the United States for purposes of the QMB rules under section 143 of the Code and the MCC rules under section 25. Rev. Proc. 2005-15 obsoleted in part.
Rev. Proc 2006-16(HTML)	IRB #2006-09(HTML)	February 27, 2006
This procedure explains how a state's commercial revitalization agency may retroactively allocate commercial revitalization expenditure amounts under section 1400I of the Code for qualified revitalization buildings placed in service after Dec. 31, 2001, in the expanded area of a renewal community. The procedure also explains how a taxpayer may make a commercial revitalization deduction election under section 1400I(a) for these buildings and may elect to deduct the increased section 179 expensing amount provided by section 1400J for qualified renewal property placed in service after Dec. 31, 2001, in the expanded area of a renewal community. Rev. Proc. 2002-9 modified and amplified and Rev. Proc. 2003-38 modified.
Rev. Proc. 2006-15(HTML)	IRB #2006-05(HTML)	January 30, 2006
This procedure provides the maximum vehicle values for use of the special valuation rules under regulations sections 1.61-21(d) and (e). These values are indexed for inflation and must be adjusted annually by referring to the Consumer Price Index (CPI).
Rev. Proc. 2006-14(HTML)	IRB #2006-04(HTML)	January 23, 2006
Use of replacement cost method to value parts inventory of heavy equipment dealers. Heavy equipment dealers may approximate the cost of their heavy equipment parts inventory using the safe harbor replacement cost method described in this revenue procedure. Procedures are provided for heavy equipment dealers to obtain the automatic consent of the Commissioner to change to this replacement cost method of accounting. Rev. Proc. 2002-9 modified and amplified. Rev. Proc. 2002-17 modified.
Rev. Proc. 2006-13(HTML)	IRB #2006-03(HTML)	January 17, 2006
Reporting requirements; fair market value of conversion; Roth IRAs. This procedure provides safe harbor methods for determining the fair market value of an annuity contract that has not yet been annuitized for purposes of determining the amount includible in gross income as a result of a conversion of a traditional IRA to a Roth IRA, as described in Q&A�14 of section 1.408A�4T.
Rev. Proc. 2006-12(HTML)	IRB #2006-03(HTML)	January 17, 2006
This document provides procedures under which certain taxpayers may obtain automatic consent for a taxable year ending on or after Dec. 31, 2005, and for certain earlier taxable years, to change to a method of accounting provided in regulations sections 1.263(a)-4, 1.263(a)-5, or 1.167(a)-3(b). Rev. Procs. 97-27 and 2002-9 modified and amplified. Rev. Procs. 2004-23 and 2005-9 superseded for certain taxable years.
Rev. Proc. 2006-11(HTML)	IRB #2006-03(HTML)	January 17, 2006
Simplified service cost and simplified production method change procedures. This document provides procedures under which a taxpayer may use either the advance consent procedures of Rev. Proc. 97-27 or the automatic consent procedures of Rev. Proc. 2002-9 to request a change in method of accounting to comply with section 1.263A-1T or 1.263A-2T for the taxpayer�s first taxable year ending on or after August 2, 2005. Rev. Procs. 97-27 and 2002-9 modified.
Rev. Proc. 2006-10(HTML)	IRB #2006-20(HTML)	January 9, 2006
This procedure supersedes Rev. Proc. 96-52, 1996-2 C.B. 372. It describes the qualifications necessary to become an acceptance agent and the procedures that an acceptance agent applicant must follow for purposes of entering into an acceptance agent agreement with the IRS. Rev. Proc. 96-52 superseded.
Rev. Proc. 2006-09(HTML)	IRB #2006-02(HTML)	January 9, 2006
This procedure explains the manner in which taxpayers may request an advance pricing agreement (APA) from the APA Program within the Office of the Associate Chief Counsel (International), the manner in which such a request will be processed by the APA Program, and the effect and administration of APAs. Rev. Proc. 2004-40 superseded.
Rev. Proc. 2006-08(HTML)	IRB #2006-01(HTML)	January 3, 2006
User fees for employee plans and exempt organizations. Up-to-date guidance for complying with the user fee program of the Service as it pertains to requests for letter rulings, determination letters, etc., on matters under the jurisdiction of the Office of the Division Commissioner, Tax Exempt and Government Entities, is provided. Rev. Proc. 2005-8 superseded.
Rev. Proc. 2006-07(HTML)	IRB #2006-01(HTML)	January 3, 2006
Areas in which rulings will not be issued; Associate Chief Counsel (International). This procedure revises the list of those provisions of the Code under the jurisdiction of the Associate Chief Counsel (International) relating to matters where the Service will not issue rulings or determination letters. Rev. Proc. 2005-7 superseded.
Rev. Proc. 2006-06(HTML)	IRB #2006-01(HTML)	January 3, 2006
Employee plans determination letters. Revised procedures are provided for issuing determination letters on the qualified status of employee plans under sections 401(a), 403(a), 409, and 4975 of the Code. Rev. Proc. 2005-6 superseded.
Rev. Proc. 2006-05(HTML)	IRB #2006-01(HTML)	January 3, 2006
Technical advice. Revised procedures are provided for furnishing technical advice to area managers and appeals offices by the Office of the Division Commissioner, Tax Exempt and Government Entities, regarding issues in the employee plans area (including actuarial matters) and in the exempt organizations area. Rev. Proc. 2005-5 superseded.
Rev. Proc. 2006-04(HTML)	IRB #2006-01(HTML)	January 3, 2006
Rulings and information letters; issuance procedures. Revised procedures are provided for furnishing ruling letters, information letters, etc., on matters related to sections of the Code currently under the jurisdiction of the Office of the Division Commissioner, Tax Exempt and Government Entities. Rev. Proc. 2005-4 superseded.
Rev. Proc. 2006-03(HTML)	IRB #2006-01(HTML)	January 3, 2006
Areas in which rulings will not be issued (domestic areas). This procedure provides a revised list of those provisions of the Code under the jurisdiction of the Associates Chief Counsel (Corporate, Financial Institutions and Products, Income Tax and Accounting, Passthroughs and Special Industries, and Procedure and Administration), and the Division Counsel/Associate Chief Counsel (Tax Exempt and Government Entities) relating to matters on which the Service will not issue rulings or determination letters. Rev. Procs. 2005-3, 2005-61, and 2005-68 superseded.
Rev. Proc. 2006-02(HTML)	IRB #2006-01(HTML)	January 3, 2006
Technical advice and technical expedited advice. This procedure explains when and how the Associate Chief Counsel (Corporate), Associate Chief Counsel (Financial Institutions and Products), Associate Chief Counsel (Income Tax and Accounting), Associate Chief Counsel (International), Associate Chief Counsel (Passthroughs and Special Industries), Associate Chief Counsel (Procedure and Administration), and Division Counsel/Associate Chief Counsel (Tax Exempt and Government Entities) issue technical advice memoranda (TAMs) and technical expedited advice memoranda (TEAMs) to a director or an appeals area director. It also explains the rights a taxpayer has when a field office requests technical advice or technical expedited advice regarding a tax matter. Rev. Proc 2005-2 superseded.
Rev. Proc. 2006-01(HTML)	IRB #2006-01(HTML)	January 3, 2006
Letter rulings, information letters and determination letters. This procedure contains revised procedures for letter rulings and information letters issued by the Associate Chief Counsel (Corporate), Associate Chief Counsel (Financial Institutions and Products), Associate Chief Counsel (Income Tax and Accounting), Associate Chief Counsel (International), Associate Chief Counsel (Passthroughs and Special Industries), Associate Chief Counsel (Procedure and Administration), and Division Counsel/Associate Chief Counsel (Tax Exempt and Government Entities). This procedure also contains revised procedures for determination letters issued by the Large and Mid-Size Business Division, Small Business/Self-Employed Division, Wage and Investment Division, and Tax Exempt and Government Entities Division. Rev. Procs. 2005-1 and 2005-68 superseded. Section 10 of Rev. Proc. 2005-12 modified and superseded.

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